Belrise Industries Limited (BELRISE) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to Q1 and FY27 on e-conference call of Bellwise Industries Limited. As a reminder, all participants will be in the listen-only mood, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Before we begin, a brief disclaimer, this conference call may contain forward-looking statements about the company which are based on beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantee of future performance and involved risk, and uncertainties that are difficult to predict. I now hand the conference over to Mr. Srikant Bhardwai, Managing Director of Bellrise Industries Limited. Thank you, and over to you, sir.

Good morning, everyone, and thank you for joining us to discuss Bell Drive Industry's financial results for the year first quarter of FI 2027. On the call today, I have with my son, Sue Meitanswastit, along with our CFO, Mr. Rahul Ghanu, our CMO, and HGA, our Investor Relations Advisor. We entered A527. Carrying forward the momentum we built through last year, and I am pleased to say, Q1 has been an eventful quarter for us. We strengthened our balance sheet through a capital raise, added a high-quality business to our commercial vehicle portfolio, This video made further progress on our energy and aerospace and defense platform. And continue to win marquee new business across our core segment. On the demand side, our two and three other business, which remains the largest contributor to revenue, continue to benefit from the industry-wide volume recovery and from new platform launches at our marquee customers. Our growing engagement with two marquee OEMs. Where he previously had limited presence, continues to build a robust order book for us. Our core villain and commercial vehicle business were the fastest growing segments of our portfolio in FI26. And his momentum has continued into Q1 FI27. With revenues growing 18% year on year, Driven by new business wins across an expanding customer base. Coming to the results, against the backdrop of continued geopolitical uncertainty, we delivered a resilient quarter with a path reaching INR 1217 million. Total revenue from operations for Q1 FI 27 to that INR 25465 million. Up 13% year on year, including manufacturing revenue of INR 21979 million, which grew 20% year on year. Our EBITDA 2.INR 2933 million, with margins at 11.5%. Let me also touch briefly on the cost environment we are operating in. Input cost, particularly steel and polymer remained elevated to quarter 1 FI27. As we have said before, our back-to-back pricing model means these fluctuations are largely passed to our customers with a slight lag, and we do not expect this to have a material impact on our margin profile in this price fiscal year. I can say with a great amount of confidence that the worst is behind us in terms of cost pressure. Coming to our growing footprint in the aerospace and defense segment, this is a strategic pillar for us. And we have made significant progress in building our capabilities there. Last year, we acquired HDM and Crystal Hall. Further deepening our capabilities in this domain. Together with these acquisitions, we have significantly strengthened our capabilities in aerospace manufacturing. We are also in advance discussion to localize a portion of the high-volume aero engine component in India, and expect to share further details on the initiative in the coming times. With this, I hand over the call to Swasti to discuss the key order wins across key customers during this quarter. Thank you, everyone.

Thank you. This is a strong quarter for us for new businesses, with wins spanning our old two-wheeler and three-wheeler portfolio, our proprietary product portfolio, as well as new adjacencies such as renewable energy and aerospace events. What is particularly encouraging is the increasing breadth of these wins. Both in terms of customers, and the scope of orders we're being selected to provide. So, coming to the order bit. Number one, we secured an additional order from one of the fastest-growing two- and three-wheeler OEMs for the chassis system for one of their highest-selling models this quarter. The program is expected to generate annual revenue in excess of INR 650 million and will be added to our existing ground-field facility in Bangalore. With start-up production expected in Q4 of this fiscal year. This win is over and above the exhaust system and fuel tank order win we had secured from this OEM last quarter. And we are pleased to see our engagement and wallet share with this customer continue to build momentum. Secondly, we are also embarking on a manufacturing expansion focused on assemblies for the renewable energy sector. We're working with one of the largest solar tracker manufacturers in the United States for a new setup which will manufacture sheet metal assemblies which will approximately support two and a half gigawatts of annual supplies. We expect production to commence in quarter four of this fiscal year with a gradual ramp-up thereafter. At peak volumes, the facility is expected to generate annual revenue in excess of INR 1,500 million. We see this as an important step in diversifying Bellrise beyond its core automotive segment and expanding our presence in the renewable energy sector. Thirdly, this quarter, we continue to build our momentum in our proprietary product portfolio by further expanding our customer base in the suspension segment. As discussed last quarter, we are currently supplying suspension systems to four marquee two-wheeler and three-wheeler OEMs. We have now secured an order from a fifth OEM. A leading Vietzmini two-wheeler manufacturer entering the Indian market. For this customer, we'll manufacture both suspensions and braking systems for its upcoming models. While the project timelines remain confidential, we're pleased to further expand our customer base and increase our content for vehicles across multiple OEMs. Fourth, we've also won an order from a marquee legacy three-wheeler OEM for their complete brake assemblies, including wheel cylinders, We expect supplies under this program to commence in the quarter four of this fiscal year, while the initial out size is modest. This is a strategically important win for us, as it gives us an entry into one of the fastest growing sea-wheeler OEMs in the south of India, and further expands our presence in the proprietary latency segment. Fifth, we also secured a significant order from a leading Indian four-wheeler OEM, where we have been selected to manufacture 59 unique assemblies as part of the localization program for one of the highest-selling EV models. The localization program is progressing rapidly, and we expect to support this program for an expansion at our existing facilities in Maharashtra. In addition to the underlying mass manufacturing order of these components, We have also secured an order to design and develop the tooling, pictures, and automation required to manufacture these parts. This is similar to the work we've previously executed for a leading Japanese, popular OEM. This capability is opening up a new revenue stream for us, where we can go beyond component manufacturing and provide bespoke, end-to-end manufacturing solutions to OEMs. This allows customers to work with a single partner across machinery, tooling, etc. 6. Following our acquisition of H1 India in the last fiscal year, we've also now successfully concluded our technology collaboration with H1 Japan during this quarter, thus strengthening our capabilities for high-dentile steel applications up to 1470 Mbps. Which is approximately three times the industry standard today in India. This capability will be a key differentiator as we expand our presence in the passenger vehicle and commercial vehicle segment. And lastly, we also want an order to commence supplies of a two-wheeler chassis for an existing model of one of the country's largest two-wheeler OEMs for its Sambhaji Nagar facility. Supply is expected to ramp up from the quarter four of this fiscal year. With the program representing an annual revenue potential of approximately INR 500 million. During this quarter, we also navigated several operating headwinds, including disruption to input availability and logistics from the global oil situation, elevated raw material and energy costs, and higher staff and labor costs following the minimum rate. Despite these challenges, our operations remain uninterrupted, and we continue to meet all customer delivery commitments. While some pressure is persisted in this quarter, we don't expect any material impact on our margins in this particular year, given our cost structure, pricing arrangements, and operational efficiencies. We expect EBITDA margins to remain broadly stable as compared to FI26 levels. And lastly, with respect to our fundraise of INR 17,000 million, we intend to deploy a significant majority of these net proceeds within this fiscal year, primarily towards high-quality inorganic opportunities and also towards select organic growth initiatives. Let me now hand over the call to Sumedh, who will take you through how we're thinking about our inorganic growth, and he'll also talk about our Haiva India cheaper business acquisition. Thank you.

Thank you, Rassid. Coming to the QIP, as my father and my brother mentioned, we raised approximately 17,000 million INR during the quarter to support our next asset growth. A last part of these proceeds will be deployed towards inorganic growth, particularly in aerospace and in the four-year and commercial vehicle segments, which are key strategic focus areas for us. In aerospace, our focus is on acquiring well-run, high-capability businesses, In India, and globally, that possess an inherent competitive moat and long-standing, often single-source, relationships with leading global aerospace OEMs and P1 suppliers. Many of these capabilities have been developed over three to four decades, making them highly specialized, difficult to replicate, and deeply embedded within the customer's supply chain, making them very sticky. Our objective is to build on these capabilities. Expand their existing customers and program presence, and over time, leverage India as a complementary manufacturing base as a best-cost manufacturing location. We believe India offers the best-cost manufacturing base for this strategy. Beyond its cost-comparitiveness, India has a strong, growing engineering talent pool, an increasingly sophisticated manufacturing ecosystem, and highly favorable geopolitical relationships with Western markets. This creates an opportunity to combine the technical capabilities and customer relationships of these businesses with India's best cost manufacturing advantage, while maintaining the quality and certification standards required by the aerospace industry, which are very stringent. In the four-wheeler and commercial vehicle segments, our acquisition strategy will primarily be focused on India. While we already work with almost all major four-wheeler and commercial vehicle OEMs in the country, We're looking for businesses that bring differentiated capabilities, strong customer relationships, and product technologies that would otherwise take us considerable time to develop organically. Importantly, these acquisitions should enable us to add new product categories and meaningfully increase our content relationship. Across both areas, we will remain disciplined in our approach to capital allocation. Any acquisition we pursue will need to meet our financial return thresholds. With a clear focus on transactions that are EPS and rosy integrative from day one. One such example of a transaction we've recently completed is of Hiva. On 4th August 2026, we announced the acquisition of the Tipper business of Hiva India, marking another important step in our strategy to expand our presence in the commercial vehicle segment and build capabilities in higher value, heavier fabrication. EVA is a globally recognized leader in hydraulic and tipping solutions for the commercial vehicle industry and is part of Yost's work, a global listed engineering systems company. The business we are acquiring has an established position in the India market, supplying tipper bodies to all five of the leading commercial vehicle OEMs in the country. There are several reasons why we find this acquisition particularly compelling. Firstly, It significantly stands in our commercial vehicle customer portfolio. The business applies to a leading European commercial vehicle OEM with whom Bellrise has not worked historically. This gives us an opportunity and immediate entry point into this customer and importantly, an opportunity to leverage our product portfolio and progressively increase our wallet share with this OEM as well. Second, this is a high quality and high capital efficient business. Based on CY 2025 financials, the business generated a high-ROSI, and we have agreed to acquire it at a very attractive valuation. The transaction is currently progressing through the closing process, and we expect to complete it during Q3 of this financial year. Third, the acquisition represents an important step in Weatherizer's transition from a Tier 1 component manufacturer to a Tier 0.5 system supplier. A recent entry into long members or heavy commercial vehicles established our heavy fabrication capabilities. And Tipper bodies are a natural extension of this platform. By combining these capabilities, we are moving beyond individual components to delivering larger integrated systems and assemblies. Deepening our involvement in systems development and manufacturing, while also increasing our content process. As part of the transaction, we will also acquire three established manufacturing facilities in Pune, in Jamshedpur, and in Bangalore. which gives us an immediate manufacturing footprint close to commercial vehicle customers and clusters without the gestation period associated with building greenfield capacity. Finally, we believe the underlying market opportunity is very attractive. Continued investment in infrastructure, construction and mining should support healthy demand for tippers in India over the medium to long term. At the same time, we see an opportunity to leverage the required heavy fabrication capabilities Beyond traditional commercial vehicle applications, particularly in defense and armored vehicles, Beldise already has a strategic partnership with LaSan Sasan, an Israeli company under which we intend to assemble armored vehicles for the India defense market. We believe the heaviest fabrication know-how, manufacturing processes, and capabilities that come with the Haiva business will be highly synergistic with this initiative and further send our ability to address this massive opportunity. With this, I hand over the call to our CFO, Mr. Rahul Janu, who will take you through our financial performance for the quarter. Thank you so much.

Thank you, Sudhir. And good morning, everyone. Let me take you all through our financial highlights. Coming to the quarter 1, FY27, consolidated financial highlights. The total revenues through at INR 25465 million, up by 13% year-on-year from INR 22622 million. Manufacturing revenues stood at INR 21979,000,000, up 20% year-on-year from INR 183323,000, EBITDA stood at INR 2933,000, up by 5% year-on-year from INR 2805,000, EBITDA margins stood at 11.5%, manufacturing EBITDA stood at INR 2793,000, up 10% year-on-year from INR 2536,000, Manufacturing EBITDA margins stood at 12.7%. PATs stood at INR 1 to 17 million, up 9% year-on-year, from INR 1117 million. PAT margins stood at 4.8%. Exports contributed 4.5% to our manufacturing revenue in quarter 1, 5.27. Coming to the segmental performance of the manufacturing front, two-wheeler and three-wheeler contributed around 81.4 percent, passenger vehicle contributed 4.6 percent, commercial vehicle contributed 8.5 percent, and others would be around 5.5 percent in F421-F527. With this, we can open the floor for questions. Thank you.

Thank you so much. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on their test on telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Also, just a gentle reminder, in order to ensure that the management will be able to address all the questions from the participant, we request you to kindly restrict your question to two questions only per participant. If you have a follow-up question, please rejoin the queue. Our first question comes from the line of Vipula Garhwal with HSBC Bank. Please go ahead.

Yeah, hi. Can you hear me? Hello. Yes. Yeah, good to meet you. Hi. So, actually, I have a few questions. First, some clarification on the commentary. First is, like, you talked about the GC system for two-wheeler OEM with annual revenue of around 650 million. Just want to understand, we have also announced two more GC or order parts, orders earlier from South India. Is this order on top of those earlier order bins or it's a new order bin in two-wheeler segment?

Yes, so thank you for the question. This auto win is over and above what we had announced in the last quarter. Last quarter we had announced a win in exhaust systems and fuel tanks. This is a chassis system win, which is on top of that. So the growth with this fast-growing two-wheel and three-wheel OEM is going quite well. The OEM itself is continuing to gain momentum in the market, and we expect this relationship to grow at an extremely fast pace for us going forward.

So, is that fair to understand? The total order win in last one year on two-wheeler is somewhere around 1100-1200 million of annual run rate.

Is that a fair understanding?

No, sir. I think last quarter we had announced, I don't have the exact number in front of me, but as per my understanding, it was around 900 million order win in last quarter, and there's 650 million on top of that. So, it's a 1550 million INR cumulative.

Thank you. Thanks for the clarification. My second question is on the renewable energy sector. So is it a reaffirming revenue for like of around 1500 million? Or what's the timeline of revenue? Can you explain a bit on that?

Yeah, I didn't get the first part of the question, did you mention? Sorry, on the renewable energy sector, sheet metal assemblies.

So, is it a recurring revenue, or it will be a one-time revenue for you over a certain timeline?

Yeah, it's a recurring revenue. So, this is the first order win that we have won from this North American roller tracker manufacturer, and we are putting up a facility, we are expanding a current facility to enable manufacturing for this order. As I mentioned earlier, it will be recurring in nature. And we expect this to be a scalable order book. We've started with two and a half gigawatt, which is, as per the OEM, an initial entry. And we can expect this order book to expand going forward, given that this particular OEM that we're working with is a market leader in the segment. And we'll be working with them both on export as well as domestic opportunities. As I mentioned earlier, this is starting in Q4 of this fiscal year, and then we'll progress naturally from that.

Thank you, Vipul. I'm sorry to interrupt you, but you may please see Jai in the queue for follow-up. Thank you. Ladies and gentlemen, anyone wishes to ask a question may press star and one. Our next question comes from the line of Nitij Mangal with Jeffries. Please, go ahead.

Hi, good morning, and thanks for taking my question. Firstly, let me talk a bit more about how do you see the margin trajectory from here. So if it's a fully or you still expect flatish margins, but Can you talk about some of the commodity cost pressures have already come through or gotten or have been passed on to customers, and there's a big jump in staff cost for the last couple of quarters, so how does that trend in, and is there still some of these cost pressures that are left to come into the next quarter?

Thank you, Mr. for the question. So I think, based on my father's commentary and what we all mentioned, we believe that the worst is behind us in terms of cost pressures. We do believe that the commodity cost pressure that was there in quarter one, we will get the pass-through of that in the coming quarters, which means that the commodity cost cycle for us has largely paid out. Secondly, in terms of staff costs, There was, of course, an annual increment cycle that happened in this quarter for the upcoming fiscal year. Apart from that, we've also been hiring a lot because, as we speak, there's four new facilities coming up, including downfield facilities for us. So when we are ramping up these facilities, we have to hire in advance. So a lot of times these fixed costs show up on our P&L much before the revenue show up. So again, I think those have largely peaked out. And in terms of energy and transportation costs, again, there's been a sense of normalcy that's come in into those as well. So across all three, which is commodity, stuff and energy and transportation, we believe that we're largely through the cost pressure or cost pain that we felt in the first quarter. And we can expect our margins to go up in the coming quarters so that we're able to... Maintain our EBITDA margins compared to FI26.

Okay, thanks Rostar. And secondly, you have been ramping up with one of the two-wheeler players where you historically had a smaller presence. And you have gotten a couple of followers already. How do you see the potential ramp of this business further and let's say versus the content that you supply to the...

So, in terms of this fast-going two-wheel and three-wheel OEM, I think what's most exciting for us when it comes to this OEM is the fact that our content for vehicle with this OEM has risen up very fast. So, we're doing fuel time for them, we're doing exhaust systems, we're doing chassis systems. We're doing suspension systems as well as breaking systems. So in general, it's a basket of products that we've been able to penetrate with this particular OEM, which apart from say our largest OEM, we do not enjoy this type of content vehicle across any other OEM. And this is especially exciting because this particular OEM is amongst the fastest-growing OEMs today. In the country. Do you want to add something to that? Yeah, if I can add something.

See, fundamentally, as you've been aware, gaining entry into an OEM for a new product is a difficult part. Once you're already in sheet of supplies for a product for any of the models, it's far easier to replicate or horizontally expand that portfolio across different models. Because there is a certain commonization, certain horizontalization that OEM also follows. So we believe this is a very exciting opportunity for us, where we have already gained entry, and we can replicate this with other models, and that's normally with the same level of on per vehicle across multiple models. So there's a significant opportunity for growth in that sense.

And just on the numbers bit, we have first mentioned that we've already won around 15-50 million INR of orders in the fuel tank, exhaust system and gas system. The suspensions and breaking winds are over and above these winds. So, one can say that we're already at a 2,000 million or a 2 billion INR run rate, which is particularly OEM, and the further combination is ongoing, which will continue to build on top of this. So, we're quite excited with the growth and continuity that we have as of now with them, and we continue, and we hope to continue building that on as we go forward. I'm like an Ashok is very bad. The valuations are actually fairly...

Thank you. Ladies and gentlemen, anyone who wishes to ask a question, may press star and 1. Our next question comes from the line of Devyansh Jaju with Trinieter Asset Managers. Please go ahead.

Hello sir, thank you for giving me the opportunity. First question was around like our new major expansion, one is Bangalore Brownfield and Ridwan utility. So can you give their current utilization and the range of production with the rent-off and how meaningful contribution will be there from the revenue?

We don't we are unable to comment on specific facilities. I think we've given our guidance on overall numbers and I think that's what we stick with.

Okay, so next question was around like after making the multiple aggregation and aerospace segment and we are going forward by using the QIP fund. So what is management looking at the business like in the aerospace segment? How much meaningful is revenue contribution over next few years?

So we had already mentioned in the last earnings call that we want aerospace and defense to get to 10% of our manufacturing revenue in a short to medium term. As we speak, and based on my... Brothers, thoughts, we are looking at acquisitions across Europe, North America, as well as India. A lot of these acquisitions that we're looking at are high-quality players, which means they've been around for four to five decades, have inherently higher ROCs and EBITDA margins than our current business, and of course, have a moat in terms of the capabilities that we've built up. So if I just take an example of what we got through Chester Halls. Chester Halls is a global leader in titanium machine components for engines. Now, as you know, engine components are among the toughest to manufacture in the aviation market with tolerances as low as one to two microns. So acquiring that capability is very important for us. And the discussions that are currently ongoing with major aerospace OGMs is to move a part of these high volume aero engine components into India. You'd ask why India? We feel India is the best cost manufacturing place in terms of our high, in terms of low arbitrage, in terms of labor costs, in terms of a very well settled engineering ecosystem, as well as very good geopolitical relationships with the West. So, we see good progress over there, and you'll hear more about these acquisitions as we go forward. Maybe Sumedh wants to add more to that.

Yeah, I think I'll just take a step back. Fundamentally, where we're focusing on the sector, there's a lot of opportunity here that exists. But if I had to take a step back and look at the overall industry. Over the past many months, leading OEMs and tier 1s, including engine makers, their leadership has spent time in India not only meeting with our country's leadership, but also visiting various locations, and there are already manufacturing facilities that have started in the likes of Gujarat with an Indian partner as well. What this signals fundamentally is they're looking at India very seriously in terms of their ecosystem. And there's obviously not a China plus one, I'd say. Actually, China's basement strategy where there is far more trust in the India ecosystem with respect to IP, know-how, capability, governance, which doesn't exist in China from that standpoint. So, that gives us an opportunity, they are looking at India very seriously, and we can, we were looking to capitalize on that, and it is a trend that is panning out, which we believe we will, we will, we have a significant role in.

Okay, sir. Thank you.

Thank you. Our next question comes from the line of Shubham with Investec. Please go ahead.

Hi. Thanks for the opportunity. I just want to give one clarification. So, your revenues from two-wheeler and three-wheeler segment have grown by about 18% on a YOY basis. Now, if I look at the industry production growth for two-wheelers and three-wheelers, it has been somewhere about 20-25%. Given that we have been gaining market share, and there would have been some benefit of R&P as well, can you please help us understand the reason for slightly lower growth versus industry? Yeah, thank you.

So, inherently, the reason for that is that... Of course, a couple of OEMs who we don't work closely with right now have been gaining higher market share and have been going faster as compared to a couple of OEMs that we work with today. So there is a bit of mix that potentially brought our growth rate down. But the good thing is that the two OEMs who have been going faster. We are now benefited them in a very meaningful way, which means that not only will our existing OEM continue to grow, but these new OEMs will add numbers on top of this. You'll see a lot of these figures come into our profit and loss in the quarter three and quarter four of this fiscal year. So I would say at the moment it is due to a lack of the right customer mix, but we have all the elements in place to make sure that Going forward, we'll have all of the OEMs in the play to make sure that we continue growing faster than the industry.

Fundamentally, there's a lag in terms of new order wins and then going to production. That's the result that you're perhaps seeing.

Okay. And will it be possible for you to quantify the benefit that we got from RM Pass-Through in our revenues portion?

We're unable to do that right now. We're happy to answer this question offline, but not at the moment.

Okay. Thank you, sir.

Also, there have been a...

Thank you. You may please return for follow-up question. Thank you. Next question comes from the line of Nithi Nagarwal with JM Financial Prescript.

Yeah, thanks. Thanks for the opportunity and congratulations on a good set of numbers in this macro challenging environment. First question is related to your trading business. So, you've seen 19% decline on a wide-wide basis in this business. Could you please explain and help us understand what has happened out there? And secondly, on the margin, in Q1, would it be possible for you to quantify the raw material impact and the employee cost impact? And I'm assuming lower contribution from trading business would also have helped our margin. So would it be possible for you to quantify these?

So thank you for the question. I think on the trading business, of course, due to the ongoing crisis in the Middle East, there was a lot of pressure in terms of a business scenario in the Middle East over this quarter. And since most of our business in this trading business comes from outside India and largely from the African, Asian and Middle Eastern regions, it was fairly muted due to everything that was ongoing. From April to June. We don't expect this to be a concern going forward. And we expect this business to grow, albeit not as fast as the manufacturing business. Sorry, what was your second question?

It was related to the margin. So, is it possible for you to quantify the impacts of raw material and price cost and the party offset impact that you would have gotten from the lower contribution from this trading business? Will it be possible?

We are happy to quantify this offline, Nathan. I think at the moment, all we can say is that the raw material pain that we have had in the first quarter is behind us. A lot of this heightened material costs will pass back to us in the next couple of quarters as different OEMs do the past website. So we don't expect there to be a material impact due to this. Yeah.

Yeah. Okay. All right. Thank you. That's it so much. Thank you.

Our next question comes from the line of Kweepul Akarwal from HSBC. Please go ahead.

Yeah, just hi. Thank you for taking my questions. Just a couple of follow-up questions. First, you talked about H1 as well, like it's high-end, like almost three-time-off, what others have in India. So what are parts benefit from this, and what is the time here, and how is it expanding? Like, if you understand, India is going for a light wing, this should help a lot over there. So how is the time, and... If you can help understand, what is the revenue trajectory you are looking at from this technology?

So, I think it's answered the first part of the question and then our CMOS will panic and add on top of that. So, I think literally all of the sheet metal parts that we manufacture today in a four-wheeler can be manufactured with high density. So, it's a concept of which parts the OEM is going to focus on to enable a light weighting and better crash safety. In fact, the order wind that we announced this quarter of around 59 assemblies that we'll be manufacturing for a large Indian EVOEM, all of these assemblies will be made within our H1 plant, or a large majority of these will be made within our H1 plant. And the fact that we have a high tensile capability has also allowed for the localization of these components, which were initially being done outside India. So the capability and the guidance that we were able to give to the OEM in terms of localizing these parts was only possible due to what we got from H1. I think the second part of what we want from the OEM is also the tooling and the automation that we are designing for them end to end. Again, when it comes to high tensile steel, what is difficult is the component manufacturing, but what is more difficult is manufacturing the tools and automation required to enable the high tensile manufacturing. So there's a concept called springback that is extremely important in the high tensile technology. To reduce the springback requires a very unique technology which H1 produces globally, and we have now inherited this. to a partnership with them. So I think there's something that we've seen increased.

Yeah, so adding to what Sastadji said that during the process of the technical agreements that we were doing, so, you know, we've been engaging with our OEMs also to understand what the requirements are and which specific parts that go into a passenger vehicle as far as safety norms are concerned would be considered. So, right now, it is under discussions, we are evaluating on both sides, but yes, the announcement of the technical agreement is a welcome scenario in the industry in India today, that much I That was really helpful.

Thank you so much. My second question is on the Plasen-Sasa, you talked about that is a highway you can always work about on heavy fabrication capabilities. So can you quantify the potential revenue over here, like if you have any order book or something, or maybe any parts which you are already supplying to any OEM or directly to defense, like Indian Army or any other entity? Can you just quantify a bit on that? It looks pretty interesting that obviously we are getting a lot of localization in Indian on the defense side of the business. So if you can get some idea around it.

So we are already supplying parts to Plasal. We are exporting them to the Israel markets. Of course, Israel as a market has been undergoing significant challenges on their own as we speak, multiple geopolitical challenges that are ongoing as we speak. Thank you very much. The progress over there is happening, but it's happening at a gradual pace. I think the acquisition of EVA is, of course, a welcome step, and it's something that we intend to, of course, utilize further. I think the main thing would be a lot of these geopolitical situations to calm down globally, which will allow us to really work with them on a more strategic basis on these new technologies.

A couple more points there. So fundamentally, Lhasa and Sasa is a global leader in anti-ballistic, high-safety armors and production of that sort. With that, with obviously what is happening in the world from a defense perspective and self-armoring, there are a lot of orders that are being placed. Given the scenario in the Middle East, production has seen, as they've identified, that There needs to be the right partner, where despite these geopolitical challenges, we can continue producing and manufacturing and meet the supplies. So in that sense, actually, India benefits significantly, and that's what we're seeing. So we're seeing greater engagement from them. We're seeing an opportunity to localize further and support them on a longer-term basis. So that's a traditional factor that we see panning out over time.

Just one last question, bookkeeping question, like, how should we look at your other revenue, maybe, like, because it also includes your defense and aerospace revenue. So, it has, like, it has been a bit volatile in terms of absolute numbers. How should we look at that number?

So, given that it was a small base, Rupul, I think it would be the fastest growing segment across all of our, you know, two-wheeler, four-wheeler. And other segments will be the fastest growing. I think we will gain a lot of benefit in the sector as we double down and move past from the renewable opportunity, on the aerospace opportunity, and the defense opportunity. All three segments or sub-segments have had meaningful traction over the past couple of quarters. You'll see a lot of the revenue flowing through in these segments going forward as well. And we maintain our guidance of reaching at least 10% of the control revenues being Thank you.

Our next question comes from the line of Ashwin Patel with LKP Securities. Please go ahead.

Yeah, hi. Thank you for taking my question, and congratulations on a good set of numbers. Just I wanted to understand, you know, the growth profile within the trading business, because that business has posted about 19% decline this quarter on a YY basis. So going forward, if you could share the outlook on that and how, you know, this business is expected to grow in the next couple of years. And my second question is, you know, just if you could share the numbers of H1 and MAC filters for this quarter. Thank you.

So on a trading business, I think the worst is behind us in terms of the Middle Eastern crisis that was ongoing. I think that has largely calmed down, which means that trading volumes globally have begun to get back to some sense of normalcy. We're unable to give specific guidance for this business. What we're guiding for is the business as a whole, which is for Bella as a whole, which is mid-team 70s, it's stable. And on H1 and MacFilter, H1 has been growing quite fast for us, while MacFilter also has been able to regain some of the market share from a large Japanese popular OEM. We're unable to comment on specific numbers for either of them because for us, it's one whole family. We continue to grow. To complete business as a whole and not look at business segment-wise.

Okay, sir. Thank you so much.

Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for the closing remarks. Thank you, and over to you, team.

Thank you all for taking out the time for this call today.

We remain committed to creating sustainable long-term value for all our stakeholders, discipline and execution, student capital allocation, and continued investment in capabilities. Hope you have been able to answer most of your queries on this call. So, running for the queries, please reach out to us or to SDA, our investor relations advisor. Thank you so much for joining us for this morning. Thank you so much.

Thank you so much, sir. Ladies and gentlemen, on behalf of Bellrise Industries Limited, that concludes today's conference. Thank you for joining us, and you may now disconnect your lines.